Getting clients to engage for an R&D claim that’s well into the future can be really tricky. A client might only be in the very early stages of business. Making an R&D claim is unlikely to be on their radar. Or, perhaps your client is well established but know they’ve got loads of time before they need to make the claim, it’s a two-year window after all.
But why is it important for a client to act early?
Well, clients beginning preparations for their R&D claim well in advance of the deadline is absolutely key to ensuring they secure the maximum cash from their claim.
Here’s an example to give some context, where a client hadn’t been tracking their ‘people time’ spent on R&D:
Meet Our Client – An Intelligent Data Software Business
We delivered their first-ever R&D Tax Relief Claim.
As a start-up business heavily focused on developing a software product to take to market; unfortunately, they hadn’t kept specific records of all employees R&D time spent. This is perfectly normal for many businesses.
So for the claim they did the best they could and reasonably estimated the time spent for their Project Developer over the last 3-year period, as 60%.
This Project Developer had a salary & pension of £50K/annum.
Working together for the future claim, we set up appropriate systems for R&D timekeeping. For this client, this was through a monthly review, taking only 15 minutes at the end of each month.
When we came to calculate the Project Developer’s time spent for the next R&D Tax Relief claim, it was recorded at 70%.
Eeeek. That was an additional £1,675 additional cashback, from, just 15 mins of work a month.
Starting early really can make a difference.
We work with our partner Accountants to ensure clients establish the right systems now to monitor all of their R&D costs. We like to keep in touch to check the systems are still working for your client and make any required changes.
RECORDING THE RIGHT INFORMATION
By engaging early, your client will have the peace of mind that they are recording the right information from the beginning. This means no under or overclaiming. Knowing what can and cannot be included in a claim takes experience – this where you can add real value.
And the truth is, through establishing the right systems and recording the right information, the value of the claim is likely to increase.
LET’S TALK NOW
If you have a client who will be claiming in the future, let’s talk now. For Diagnostax and Radish Tax customers, you can access a blog to share with your clients in the R&D Resource area, if you’d like help accessing this drop us an email at firstname.lastname@example.org